There are two two types of benefits provided by NPPF: Pension and Provident Fund.
Provident fund is paid in lump-sum i.e. accumulated contribution and rate of return. The rate of return is declared and credited to each individual account based on the investment performance. The rate of return is credited to contribution as well as accumulated interest.

Pension is a stream of income paid regularly to the members qualified for monthly pension with a minimum of 10 years of contribution and retired attaining the superannuation age. The benefit is defined by the formula that specifies the amount of benefit as percentage of basic salary.

Armed Forces

  • Monthly pension = (45% x Final Basic Salary x No.of years of service)/27
  • Where, Final Basic Salary is the average of the last 12 months.

For Civil Employees

  • Monthly pension = [40% x Final Basic Salary x No. of years of service(Maximum 30 years)]/30


Contributions after 30 years in pension is given as lumpsum

Early pension prior to five years of superannuation age is paid with reduced pension amount of 6% per annum.
Members who are not qualified for monthly pension are paid lump-sum benefit i.e. all the contributions and the rate or return.